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Stanley Electronics Products, Inc., finds that new-product production is affected by an 80 percent learning effect. The company has just produced SO units of output at 100 hours per unit. Costs were as follows:
Materials @ $20
$1,000
Labor and labor-related costs:
Direct labor-100 hours @ $8
800
Variable overhead-100 hours 0 $2
200
$2,000
The company has just received a contract calling for another SO units of production. It wants to add a 50 percent markup to the cost of materials and labor and labor-related costs. Determine the price for this job.
people will do something in their self interest. as a matter of fact a marketplace economy depends on self interest to
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